How long it takes to become a millionaire in every state

This article originally appeared on GOBankingRates.com: How Long It Takes to Become a Millionaire in Every State

According to a recent GOBankingRates survey, most Americans think you need at least $1 million to be considered “rich.” Very few people actually earn a seven-figure salary, but it is possible to save $1 million even if you’re earning a median income — but that could take a while.

GOBankingRates calculated how long it would take a person in each state to be a millionaire in three ways: just by looking at household income, by taking cost of living into account and by taking cost of living and investments into account.

This study is focused on the third calculation, which assumes you earn the state’s median income, spend the average per capita for personal consumption and invest what’s left over. The calculation assumes a 5.5 percent return on investment, which is the average return on long-term investments.

For the U.S. as a whole, it would take 61 years to be a millionaire — or 65 years if you don’t invest. Find out how long it takes to be a millionaire across America.

51 PHOTOS
How long it takes to become a millionaire in every state
See Gallery
How long it takes to become a millionaire in every state

Alabama: 69 Years

Even though Alabama has the fifth-lowest median household income in the U.S. — $46,257 — it’s not one of the top 10 states where it takes the longest to be a millionaire. That’s because it’s also the state with the second-lowest cost of living.

Photo credit: Getty

Alaska: 33 Years

The amount of time it takes to be a millionaire in Alaska earning the median household income is the fourth-shortest of all the states. It’s also the state with the second-highest median household income — $76,440 — which helps to amass more money faster.

Photo credit: Getty

Arizona: 50 Years

Arizona has the ninth-lowest per capita personal spending of all the states, but its median household income is below the national average, so it still takes longer here to be a millionaire than in many states.

Photo credit: Getty

Arkansas: 83 Years

It takes the seventh-longest amount of time to save $1 million in Arkansas compared to the other states. Arkansas’ median household income is $44,334 — the third-lowest in the U.S. — so it would take a long time for the average resident there to save that much money.

Get Started: 12 Realistic Ways to Make Your First $1 Million

Photo credit: Getty

California: 41 Years

At 41 years to be a millionaire, California is the state where it takes the eighth-shortest amount of time to save seven figures. It’s also the state with the 10th-highest median household income at $67,739.

Photo credit: Getty

Colorado: 40 Years

Colorado is the state where it takes the seventh-shortest amount of time to save $1 million. However, it would take longer if you don’t invest: about 43 years.

Photo credit: Getty

Connecticut: 42 Years

It takes the ninth-shortest amount of time to become a millionaire in Connecticut compared to the other states, due in part to its high median household income. At $73,433 the Northeast state has the seventh-highest median income in the U.S.

Photo credit: Getty

Delaware: 49 Years

If you earn the median household income in Delaware, it would take 16 years to become a millionaire — if you didn’t have any expenses. Realistically, it would take 49 years if you put savings into investments, and 51 years if you don’t.

Photo credit: Getty

District of Columbia: 65 Years

Washington, D.C., has the fourth-highest median income in the U.S. — $75,506 — but its cost of living is the highest, so it takes longer than the national average to become a millionaire there. 

Photo credit: Getty

Florida: 84 Years

It takes a long time — the sixth-longest time of all the states — to save $1 million in Florida. Without investing, it takes even longer: 88 years.

Photo credit: Getty

Georgia: 51 Years

The median household income in Georgia is $53,559, and the average per capita personal consumption cost is $35,028. If you save the difference each year, you’ll be able to rack up $1 million in 53 years, or two years less if you put the difference into investments.

Do You Agree? Here’s How Much You Need to Earn to Be ‘Rich’ in Every State

Photo credit: Getty

Hawaii: 33 Years

The Aloha State is a good place for aspiring millionaires: It takes the third-shortest amount of time to save seven figures here compared to the other states. That’s due in part to the fact that it also has the sixth-highest median household income in the U.S.: $75,297.

Photo credit: Getty

Idaho: 58 Years

In Idaho, the average household is able to save $16,468 per year assuming they earn the median income and spend the average on living costs. If that money is put directly into savings, you’d be able to retire in 61 years, or three years less if that money goes into investments.

Photo credit: Getty

Illinois: 53 Years

Illinois’ median household income is $60,960. If you were able to save every penny from that income, you’d be a millionaire in 16 years.

Photo credit: Getty

Indiana: 59 Years

If you earn the median household income and spend the average amount on living costs in Indiana, you’d be able to save $16,009 each year. That means you’d be a millionaire in 62 years if you saved — but didn’t invest — that money.

Photo credit: Getty

Iowa: 51 Years

The median household income in Iowa is $56,247, and the average spent per capita on personal consumption is $37,652. If you invest what’s left over, you could be a millionaire in 51 years; if you put it into savings, you’d be a millionaire in 54 years.

Photo credit: Getty

Kansas: 51 Years

A household earning the median income — $54,935 — and spending the average amount on living costs — $36,305 — in Kansas would be able to save $18,630 annually. That means it would take 54 years to be a millionaire in the state without investing. 

Photo credit: Getty

Kentucky: 74 Years

Kentucky has the sixth-lowest median household income in the U.S., so it takes about 13 years longer to become a millionaire there than the average time for the country as a whole.

Photo credit: Getty

Louisiana: 89 Years

The amount of time it takes to be a millionaire in Louisiana is the fifth longest of all the states. That’s because the state has the fourth-lowest median household income in the U.S. at $45,146.

Find Out: 10 States With the Most Millionaires  

Photo credit: Getty

Maine: 98 Years

Most people won’t live to be millionaires in Maine, where it takes the third-longest amount of time of all the states to save $1 million. Without investing, it takes even longer: a whopping 103 years.

Photo credit: Getty

Maryland: 28 Years

Twenty-eight years might seem like a long time, but Maryland is the state where the average person can become a millionaire the quickest. That makes sense given that it’s also the state with the highest median household income: $78,945.

Photo credit: Getty

Massachusetts: 43 Years

The median household income in Massachusetts is $75,297, which is the fifth-highest in the U.S., but its per capita personal spending is the second-highest, which prevents it from being one of the top 10 states where you can become a millionaire the fastest.

Photo credit: Getty

Michigan: 71 Years

Michigan’s median household income is $52,492, and its average per capita personal consumption spending is $39,273. If you save what’s leftover rather than investing it, it would take 75 years to be a millionaire.

Photo credit: Getty

Minnesota: 47 Years

The land of 10,000 lakes has a median household income of $65,599, which is almost $10,000 more than the national median. Given that information, it’s easy to see why it would take 14 years less in Minnesota to be a millionaire than the time it takes on average for the U.S. as a whole.

Steps to $1 Million: How to Become a 401k Millionaire

Photo credit: Getty

Mississippi: 81 Years

Mississippi is the state where it takes the eighth-longest amount of time to become a millionaire, which isn’t surprising given that it’s the state with the lowest median household income at $41,754.

Photo credit: Getty

Missouri: 72 Years

A household earning Missouri’s median income — $51,746 — and spending the average amount on living costs — $38,619 — would save $13,127 a year. Without investing that money, it would take 76 years to be a millionaire.

Photo credit: Getty

Montana: 104 Years

Montana is the state where it takes the second longest to become a millionaire. That’s because the amount a household is able to save annually earning the median income and spending the average on living costs is very low — only $9,072.

Photo credit: Getty

Nebraska: 56 Years

The median household income in Nebraska is $56,972, and the average spending per capita on personal consumption is $40,160. That means the average household would be able to save $16,767 per year, so it would take 58 years to save $1 million without investing.

Photo credit: Getty

Nevada: 62 Years

A household earning the median income in the Battle Born State would be able to save an average of $15,374 after accounting for living costs. At that rate, it would take 62 years to save $1 million if that money is invested, or 65 years if it’s put into savings.

Photo credit: Getty

New Hampshire: 46 Years

The median income in New Hampshire is $70,963, which is the eighth-highest in the U.S. However, the amount it takes to cover living costs in the state is fourth-highest, so it takes longer than you might expect to be a millionaire there.

Photo credit: Getty

New Jersey: 36 Years

The road to millionaire status in New Jersey is (relatively) short — it’s the state where it takes the fifth-shortest amount of time to be a millionaire, thanks in part to its high median income. The median household income in the Garden State is $76,126, which is the third-highest in the U.S.

Photo credit: Getty

New Mexico: 79 Years

New Mexico is the state where it takes the 10th-longest amount of time to be a millionaire. It also has the seventh-lowest median household income at $46,748, so it would take a long time for the average household to accrue such a large amount in savings.

Photo credit: Getty

New York: 70 Years

The cost of living in New York is the sixth-highest in the U.S., so not much is left over from the median salary to save or invest — $13,618 per year for a household earning the median income and spending the average amount to cover living costs. It takes nine years longer to be a millionaire in N.Y. than in the U.S. as a whole, assuming savings are invested.

Photo credit: Getty

North Carolina: 58 Years

Even though the per capita personal spending in North Carolina is the seventh-lowest of all the states, its median household income is below the national average, so it takes longer there to save $1 million than in many other states.

Photo credit: Getty

North Dakota: 68 Years

It takes over 20 years longer to be a millionaire in North Dakota compared to the national average. That’s because it’s the state with the ninth-highest cost of living.

Check Out: The Cost of Living Is Quickly Rising in These 20 US Cities

Photo credit: Getty

Ohio: 73 Years

The median household income in the Buckeye State is $52,334, and the average per capita spending on personal consumption is $39,403. Putting the leftover into savings, the average household would be able to save $1 million in 77 years, or four years less if that money is invested.

Photo credit: Getty

Oklahoma: 59 Years

Oklahoma’s median household income is $49,176 — the ninth-lowest of all the states. Fortunately, it also has the fourth-lowest per capita personal spending, so $16,120 can be put toward savings and investing each year from that income.

Photo credit: Getty

Oregon: 57 Years

A household earning the median income in Oregon will bring in $57,532 each year, and spend an average of $40,805 to cover living costs. That means $16,727 would be left over to save or invest.

Photo credit: Getty

Pennsylvania: 67 Years

If you earn the median household income in Pennsylvania — $56,907 — and are able to save it all, you could be a millionaire in 18 years. More realistically, it would take 71 years to save $1 million after accounting for living costs and saving the rest, or four years less if that money went to investments.

Photo credit: Getty

Rhode Island: 54 Years

The median household income in Rhode Island — $60,596 — is about $4,000 more than the U.S. median. After accounting for living expenses and investments, it takes seven years less to be a millionaire in Rhode Island than in the country as a whole.

Photo credit: Getty

South Carolina: 60 Years

South Carolina’s median household income — $49,501 — is the 10th-lowest of all the states. It also has the fifth-lowest per capita personal spending, so $15,809 can be put toward savings or investing each year.

Photo credit: Getty

South Dakota: 80 Years

In South Dakota, it takes the ninth-longest amount of time of all the states to save up $1 million. That’s because the state has a below-average median household income of $54,467 and an above-average per capita personal consumption costs of $42,558.

Find Better: 12 Cities With High Salaries and Low Costs of Living

Photo credit: Getty

Tennessee: 69 Years

Tennessee has the eighth-lowest household income in the U.S. at $48,547, but it’s not one of the top 10 states where it takes the longest to be a millionaire. That’s due to a low cost of living — $34,905 per year on average.

Photo credit: Getty

Texas: 50 Years

The median household income in the Lone Star State is $56,565, and the average per capita spending on personal consumption is $37,486. With $19,079 left over to save or invest, it would take 52 years to be a millionaire if that money went into savings, or two years less if it went toward investments.

Photo credit: Getty

Utah: 31 Years

It takes the second-shortest amount of time to become a millionaire in Utah compared to all the other states. That’s because the median income is about $9,000 above the national median, and the cost of living is about $5,000 less. A household earning the median income in Utah is able to save or invest an average of $30,191 each year.

Photo credit: Getty

Vermont: 96 Years

There are only three states where it takes longer to be a millionaire than it does in Vermont. That’s due in part to the fact that it’s the state with the eighth-highest cost of living, so very little is left over from the average income to save or invest. In fact, it’s the state where the average household is able to save the fourth-least each year: $9,832.

Find the Right Area: Best Places in Every State to Live on a Fixed Income

Photo credit: Getty

Virginia: 39 Years

It takes the sixth-shortest amount of time to become a millionaire in Virginia compared to the other states. That’s in part thanks to its median household income of $68,114, which is the ninth-highest in the U.S.

Photo credit: Getty

Washington: 42 Years

At a little over four decades to become a millionaire, Washington is the state where it takes the 10th-shortest amount of time to save seven figures. The median income in the state is $67,106 and the average per capita spending on personal consumption is $44,377, so $22,729 is left over to save or invest each year.

Photo credit: Getty

West Virginia: 110 Years

It will take longer to become a millionaire in West Virginia than in any other state. It’s the state with the second-lowest median income in the U.S. — $43,385 — which makes it hard to save so much money.

Photo credit: Getty

Wisconsin: 59 Years

The median income in Wisconsin is just above the national median, and the cost of living is just below the national average. When that difference is compounded with interest though, it can really add up — it takes two less years to be a millionaire in Wisconsin than in the U.S. as a whole.

Photo credit: Getty

Wyoming: 50 Years

Wyoming’s median household income is $59,882, and the average per capita spending on personal consumption is $41,036, which leaves $18,846 to save or invest each year. If the money is put toward savings alone, it would take 53 years to retire.

Click through to find out how much it costs to live comfortably in America’s 50 biggest cities.

Photo credit: Getty

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

More from GO Banking Rates:   
Here’s How Much the Average Person Makes in 30 Countries Around the World 
Cities Where You Can Realistically Live on Minimum Wage 
Richest and Poorest Area Codes in the US

We make money easy. Get weekly email updates, including expert advice to help you Live Richer™.

Methodology: GOBankingRates calculated how long it takes to be a millionaire in every state by using median household income data from Census Burea and annual consumption data from the Bureau of Economic Analysis. GOBankingRates found the difference between what a median household in every state earns and per capita consumption in every state, and divided that figure by 1 million in order to find how many years, days and months it would take to reach $1 million in every state. Figures were rounded to the nearest year.

Median household income was used for this study because per capita income wouldn’t cover the per capita consumption in every state. In addition, to account for investing leftover income, we took the difference between annual income and consumption expenditure and assumed it was invested in a portfolio with the average investor’s long-term average of around 5.5 percent, according to Zacks Investment Research.

Read Full Story